THE STATE REVIEW. 



11 



--;. and nearly three times that de- 

 livered in 1*90. There were finished and deliv- 

 ered during the fiscal year mill. r,'l.3.>S,291 sheets; 

 during the riseal year I'.M'i,'. i::'.i.li;T.::5y sheets, and 

 during the fiscal year r L sheets. 



this increase in the work was shown to 



rmanent, it became again n< > have 



overtime and night 



work, and Congress authorized an additional 

 building in be located west of the existing build- 

 This addition was authorized by act of 

 . and it was completed March 26, 

 fully expected when this building 

 Authorized in li)0: that it would afford suffi- 

 cient space to permit the erection of enough ad- 

 ditional presses to discontinue overtime and night 

 work, but before the building was finished the 

 -urer of the United States increased his re- 

 quisitions for United .Stale- notes and certificates 

 to the extent of S.000,000 sheets a year, and the 

 Comptroller of the Currency increased his for 

 national bank notes to the extent of 2.000,000, 

 making a total incrase of 10,000,000 sheets a year. 

 The amount of plate printing required to fill these 

 requisitions was greater than could be executed 

 on the total number of presses that could be ac- 

 commodated, including the additional presses set 

 up in the space made available by the erection 

 of the west building, and necessitated the con- 

 tinuance of overtime by the day force of printers 

 and as aid of a night force consisting of 



204 printers. 204 assistants, 66 operatives, and 30 

 helpers in the printing, wetting, examining and 

 numbering division?. The estimates for 1908 

 an increase over the increased estimates for 

 f 6.1 per cent. 



m- 

 railroad 

 organ - 



TAXPAYERS BUNCOED. 



The latest municipal plant in a large city to 

 the electric light plant of 



Columbus, Ohio. The director of public service 

 a-ked last June for an additional bond issue of 

 SHO.IHKI. The city fathers were bashful about 

 submitting this question to the voters. Now Di- 

 rector Lied says that if the money is not forth- 

 coming the plant will be thrown out of busines:- 

 and the S5.50.000 already expended will be lost. 

 He adds that the plant is wholly inadequate, and 

 that the city is paying a private company at the 

 rate :n light the streets that 



would otherwise be left to the tender mercies of : 

 the moon. 



The last bonds were issued in April, 1905, 

 and amounted to S:;."..ooo and were stated to be 

 for "completing the plant" (.the plant was begun 

 in 18) 



During an investigation held in June, 1905, the 

 most amazing ignorance, incompetence and ex- 

 travagance were brought to light, but the origi- 

 nal contract was not. as that important docu- 

 ment had been "lost" from the city records. Blun- 

 ders in planning and construction are alleged 

 that would have caused an honest electrician's 

 or architect's apprentice to hang his head for 

 shame if he had perpetrated them. And the in- 

 spection engineer of a large Philadelphia firm 

 stated that his company was at that time install- 

 ing a plant of approximately the same capacity 

 ; 25.000 less than the sum now asked to 

 "complete" the plant on which $550,000 has been 

 lavished. 



The comment of the Brooklyn Eagle is "you 

 simply can't marry business to politics," and the 

 i Advertiser adds : 



"Of course, it is easy enough to say that the 



people of that city should have learned enough 



from the failure of public ownership, everywhere 



to keep out of so dangerous a venture; but 



the writings of badly informed theorists probably 



deluded Columbus as they have deceived other 



mities. Boston once tried municipal ow-n- 



ership and lost over $3,000,000 by the venture." 



comparison with other and perhaps more fortu- of public during which it seem- that 



ante countries. | the other theory is being advanced with more or 



Hie English .told at the Bank of Eng ;erency, that the individual is made for the 

 [and was 24,000,000 at the close of the yeai .nd not ti: r the individual but the 

 m the days of s ma ll gold prod; 1 much basic fact remains true that the ~tate is a creatioi 

 smaller business. It w; L .'S.000,000 at the for the benefit of the individual. The creations 

 ihough we have seen that the gold of the state, likewise, were intended and are vet 

 action had trebled in the interval, and busi- intended to assist the individual, not to supplant 

 had probably doubled. 'I he highest point him. There is no business which mav be con- 

 reached was in 1895, at the end of which year it ducted by an artificial person a corporation ere" 

 stood at 45,000,000. It is today about 29,000,000 ated by the state, which cannot be as well carried 

 a dangerously small sum for modern times. on by an individual, or a partnership of individu- 



\Yherc England has stood still, France, Ger- als, and which may not legally be carried on by 

 many, Russia, Austria. Italy and the United sue an individual or partnership 

 States have all advanced. In mn-t of these coun- Taking this view of the case, it is quite inter- 

 tries trade has been developing far faster than in esting to note the verbal form' of the laws pro- 

 England, and gold gojs where trade is most ac- viding for the organization of corporations for 

 live. In France, the stock of gold in the Bank various purposes. Take the railroad acts for 

 of France has risen from 2^.000,000 in 1880 to stance. They make provision that all Vailr 

 115,000,000 in 1905. It has thus been more than companies organized in Michigan shall be organ 

 quadrupled, and even today it is 112,000.000. ized under the terms of the acts But th-v do not 

 France has an ample supply, but her bank author- say that all railroads operated in Michigan shall 

 ities are careful not to part with their gold when be operated by companies o-ganized under the 

 they can possibly prevent it. laws. An individual or a partnership can own 



Germany maintained in 1SSO a stock of only and run a railroad in Michigan todav, and could 



9,600,000 in the vaults of the Reichs bank at own and run the biggest railroad in the state if 



Berlin, in addition, of course, to the military war he or it had capital enougn". The same is true of 



chest of coined gold at Spandau, on which the the street railway acts, the gas company acts the 



nation can fall back as a la>t reserve in the hour electric lighting "company acts, and the general 



of war. She trebled this amount between 1880 commercial corporation "statutes Fverv one of 



and 1905. for in the latter year the figure was ihem provides that whatever company "is orean 



29,000,000. while it is 36,000,000 today. \Yhere ized for these purposes shall be organized under 



England has stood still, Germany has got the the appropriate act. But not a single one of 



gold. Her ally, Austria, is another great holder them demands, because it cannot demand that 



of gold, and has recently increased her holding whomsoever undertakes to di such business' shall 



markedly. The Austro-Hungarian bank i:, ganize himself and his i nto a corner 



had a supply of only 5.600.000, which by the ation to qualify himself for entrance into the 



skill of its financial authorities was expanded ic line of business. 



a figure of 46,000,000 in 1905. and which has The corporation is simply the handmaid of the 



been as high as 49.000.000 in 1904. individual, the artificial creation which permits 



In Italy and Russia, though the figures for 1880 many individuals to put their capital or a portion 

 are not available, the same attention has been of the capital of each into a given ente-prise 

 shown to the gold reserve. Russia had at the without further liability jhan that expressed by 

 end of 1905 an amount of 74,000.000, or nearly his or their subscription". It cannot be more sub- 

 three times the British one. Italy had at the end stamial than the individual, because the individual 

 of the same year a supply of 2'.i.000,000 in gold, in doing business as an individual trader puts all 

 which in the present year has been raised to of his capital at the risk of each of his enter- 

 'D.OOO. In the United States the treasury at prises. Its convenience and <=afetv commend it 

 the end of 1905 had gold of the value of 38.000.- for large enterprises. They do "not however 

 000 in its vaults, against an amount of 24,000,000 make it necessary for smaller 



'" _ Tllere are scores of instances in the banking 



rails France, Germany, Austria, Russia and business , which the volume of business done 



the United States all keep a larger stock of gold will not afford the machinery of a baking cor- 



than does improvident England. All, or most of poration. There are scores of instances in which 



them, have increased their stock to correspond -private banks are immeasurably stronger than 



with the growth in the gold production. Italy, corresponding chartered banks. "The true theory 



with infinitely smaller requirements and obliga- with regard to the private bank is to let it live 



tions than the United Kingdom, has certainly just as it can live under the operation of the 



quintupled her stock of gold in the last twenty- law of competition. Just why people who lend 



five years, while England rests content with prac- money to private bankers need the fostering care 



tically the same quantity of the precious metal as of the state more tha nthose who lend credit for 



in the past and trusts to luck to bring her sugar, flour and hardware is not made clear by 



through any serious cr: the governor and it never will be 



It i- not as though the British Empire did not j 



produce gold in immense quantities. The mi; DIIRI /- r>*/.n 



he Rand before the Radicals got to work . . PUBLIC OWNERSHIP FALLACY, 



upon them were turning out 20.800.000 worth "Vhile I am far from posing as an autfrorify 



annually: the Australian output last year was . n tne subject, my observation leads me to- be- 



17.104.000, and the Canadian production 2.886.- lleve tllat municipal ownership in Chicago will 



The United States stood next to South " ot !' e , a . success. It i- true that it has been suc- 



Africa, with a production of 17,268.000 worth. ' ln Glasgow, but it by no means follows 



that it will be equal!.. -,il j n Chicago. Pof- 



- enters so largely into municipal affairs in 



THE REGULATION OF PRIVATE BANKS Ch ' ca g th at it seems to me it would wreck any 



i , '' proposition." savs Hon Tim Healv member 



In his annual message to the legislature of this of the British parliament 



state, Gov. Warner takes strong ground in favor "Government ownership, it seems to me is ut - 



of legislation which will accomplish the result of teriy foolish, although 1 have not madTa close 



state regulation of pnvate banks, even to the study of the matter A burdensome government 



point ot their extinction. The governor -, ld scem to would * ,; k , b 



to believe, irom Ins mode ot expression that no come much more of a menace than a series of 



institution which bears the name "Bank" shall be heavy municipal or state debts. The quest-on of 



permited to be operated unless by a corporation, municipal debt is niing the greatest t>rob- 



organized under the state or national banking lem in the United Kingdom. Cities have sunk 



laws No theory can be farther from that under themselves in a sea of de :;bli c 



which our institutions are organized. As the utiilties and other municipal en: nd there 



Investor has had occasion to say in the past, is no solution of the problem of how to get them 



there is nothing and there should be nothing in out. 



the way of business to be done which should be i "Theoretically municipal ownership is a good 



authorized to a company while it is denied to the thing, but such" a proposal is always hampered by 



individual. The individual is the basis of our politics. That has been proved "in the United 



WHERE THE GOLD IS. 



It is a surprising fact that, though for the past 

 fifteen or twenty years the production of gold 

 throughout the world has been steadily rising, 

 the United Kingdom at the present time is bare 

 of gold. Not in a literal sense, for there is al- 

 ways a handsome amount of coin and bul': 

 in the vaults of the Bank of England, but in ' government True, there are times and aspects ' Kingdom. 



